No. of Recommendations: 0
Dswartz writes:

<<Pixy, I thought you told me a couple of days ago that a deferred compensation plan (which a SIMPLE is?) can't be used if you are covered by one already (e.g. a 401K at work. What is different about the 403b?)>>

Eek! How did I forget the 403b?? I was so focused on the SEP versus SIMPLE issue I totally ignored that statement. In this case, if the 403b has already been maxed at $10K, the SIMPLE is of no value becasue no contribution will be allowed as an employee. Only the employer's contribution ($720) can be made. That means the SEP at $3.3K would win out. A SIMPLE is a salary deduction plan like the 403b. That means an individual participating in both is limited to a combined contribution of the lesser of 25% of compensation or $10K. The SEP has no such restriction.

Thanks for catching the error.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.